Public Works Committee: Hydrogen Park SA Project

Mr CREGAN (Kavel) (11:50): I move:

That the 33^rd report of the committee, entitled Hydrogen Park SA Project, be noted.

The Department for Energy and Mining recently advised the Public Works Committee that four of the projects awarded grant funding under the Renewable Technology Fund, which was established in 2017, require referral to the Public Works Committee, as I mentioned earlier. The project grants equal or exceed $4 million. The Hydrogen Park SA Project was one of the projects to be referred in those circumstances.

The Parliamentary Committees Act 1991 requires that no funds should be expended on actual public works, as I also earlier remarked, until the works have first been examined by the Public Works Committee and the final report presented in this place. The Public Works Committee has been advised that some construction-related milestone payments have, in fact, already been disbursed as part of the Hydrogen Park SA Project.

The Department for Energy and Mining submitted the project to the Public Works Committee for consideration. The committee held a public hearing for the project on 17 October 2019. The first stage of the project is expected to deliver a hydrogen production and distribution facility using a 1.25 megawatt electrolyser to demonstrate hydrogen production from renewable electricity and recycled water. It is very important project. The project will also demonstrate the blending of hydrogen and natural gas for injection into Australian Gas Networks' gas distribution network for the use of blended gas by local residential gas users.

The Public Works Committee has examined written and oral evidence in relation to this project and the committee is satisfied that the proposal has been subject to the appropriate agency consultation and meets the criteria for examination of projects, as described in the Parliamentary Committees Act 1991. I am pleased to report that, based on the evidence considered and pursuant to section 12C of the Parliamentary Committees Act 1991, the Public Works Committee reports to parliament that it recommends the scope of the public works that I have outlined and that are described in more detail in the final report that is before the house.

Mr PATTERSON (Morphett) (11:53): I also rise on this report of the Public Works Committee, entitled Hydrogen Park SA Project. This is a really great project that is occurring right here in South Australia. After sitting and evaluating this report, once the Public Works Committee had interrogated it and given approval and sign-off's I was lucky enough to see works progressing on it.

On Monday, it was a great day to be with the energy minister (member for Stuart), the Premier and also the member for Elder to see the ground breaking of this fantastic facility. In terms of what it is looking to do, hydrogen really has a fantastic ability. It is going to provide clean energy going forward, and it will support the transition to low-emissions energy across not only electricity but also potentially going forward heating transport and industry as well. The member for Kavel previously spoke about trying to get reliability into the electricity network now that there is a lot of intermittent renewable electricity generation. What is really required is to be able to get capacity in there and dispatchable electricity, and hydrogen going forward will certainly be one way to do this.

In terms of the specifics around this proposal, it is looking at generating hydrogen or producing hydrogen. A 1.25 megawatt electrolyser will be built there, and then the hydrogen produced will be able to be blended into the normal natural gas network, and then 780 local homes just in and around Tonsley will be part of the trial. In terms of the gas, it is around 5 per cent blended natural gas with hydrogen, and so the end user should see no difference in their consumption of gas and its heating properties, and also their appliances will be able to be used.

If we look back in time many years ago, hydrogen was used as part of the gas network, as part of town gas, but that hydrogen was produced using coal. This hydrogen is looking at using green energy, renewable energy to produce electricity that then the electrolyser uses to convert into hydrogen. If I could just touch on the impact, it is the first of its type in Australia. It is very exciting that here in South Australia we are looking to progress this.

There is a fantastic opportunity not only in South Australia but also worldwide to export long-term hydrogen. I know that the Premier has seen what the potentials are both in South Korea and Japan, and there are some exciting abilities for this to be an export market for South Australia. South Australia, of course, is blessed with both complementary wind and solar, and so to be able to produce green hydrogen is certainly very important.

I think that Bill Gates has said that one of the answers to trying to support the transition to low-emissions energy is going to require there to be technology evolution. We cannot just use our current technology: we have to create new technologies to be able to solve some of our problems going forward. I think that, with the rate of energy consumption increasing throughout the world as well, it is really a challenge for the global society, and technology is really going to be fundamental towards solving those problems.

Certainly hydrogen has great opportunities, and so it is fantastic that this government has put in place steps towards seeing this project, which will be a trial, and then going forward hopefully it will be expanded. As the energy minister said, people will look back in 10 to 20 years and say, 'Well, this was a first step but a vital step going forward for not only South Australia but also nationally.'

Mr CREGAN (Kavel) (11:57): I appreciate very much the contribution from the member for Morphett not only to this debate but also to the work of the committee. The member for Morphett is a valuable member of the committee. We draw on his engineering expertise frequently, and we certainly appreciate that he is available to us as a resource, as much as he is available to this place. I thank him for his commitment, as I say, to the project and to the work of this parliament, and I also acknowledge the work of the minister in ensuring that this project can be brought forward.

It is right to say that this project is visionary and requires dedication to a vision to ensure that it can be delivered, and we know of course that the minister has that commitment, vision and willingness to embrace new technology to ensure that there is a future that not only fully embraces renewable energy and ensures that we are meeting our climate commitments but also ensures that we have a reliable energy supply. New technology is fundamental to that cause and that mission.

Motion carried.